In the latest blow for Ocwen Financial Corp., the embattled collector of mortgage payments said Monday that it will pay $36 million to settle a suit brought by a group of New Jersey investment funds.
In a federal suit filed in January 2016, Broadway Gate Master Fund of Summit, New Jersey, said it invested hundreds of millions of dollars in Ocwen shares based on “false and materially misleading statements” the company made.
Ocwen shares subsequently plunged when the West Palm Beach, Florida-based company acknowledged that it had misstated earnings for 2013 and part of 2014.
“While the company believes that it has sound legal and factual defenses, Ocwen agreed to this settlement in order to avoid the uncertain outcome of trial and the additional expense and demands on the time of its senior management that a trial would involve,” the company said in a statement.
